METHODE ELECTRONICS INC Earnings Per Share Disclosure
Note 14. (Loss) Income Per Share
Basic (loss) income per share attributable to Methode is calculated by dividing net (loss) income attributable to Methode, by the number of weighted average common shares outstanding for the applicable period, but excludes any contingently issued shares where the contingency has not been resolved. The weighted average number of common shares used in the diluted (loss) income per share calculation is determined using the treasury stock method which includes the effect of all potential dilutive common shares outstanding during the period.
The following table sets forth the computation of basic and diluted (loss) income per share:
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Fiscal Year Ended |
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May 3, 2025 |
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April 27, 2024 |
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April 29, 2023 |
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(53 Weeks) |
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(52 Weeks) |
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(52 Weeks) |
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Numerator: |
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Net (loss) income attributable to Methode (in millions) |
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$ |
(62.6 |
) |
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$ |
(123.3 |
) |
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$ |
77.1 |
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Denominator: |
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Denominator for basic income per share - weighted average shares outstanding and vested/unissued RSUs |
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35,330,586 |
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|
35,470,471 |
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|
36,016,686 |
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Dilutive potential common shares |
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— |
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— |
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|
758,749 |
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Denominator for diluted income per share |
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35,330,586 |
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35,470,471 |
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36,775,435 |
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(Loss) income per share attributable to Methode: |
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Basic |
|
$ |
(1.77 |
) |
|
$ |
(3.48 |
) |
|
$ |
2.14 |
|
Diluted |
|
$ |
(1.77 |
) |
|
$ |
(3.48 |
) |
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$ |
2.10 |
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Number of anti-dilutive potentially issuable shares excluded from diluted common shares outstanding |
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1,156,752 |
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1,429,229 |
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938,281 |
|
In fiscal 2025 and 2024, all potential common shares issuable for stock options, PSUs and RSUs were excluded from the calculation of diluted loss per share, as the effect of including them would have been anti-dilutive. The dilutive effect of potential common shares issuable for stock options and RSUs on the weighted-average number of common shares outstanding would have been approximately 230,000 and 535,378 common shares, respectively, for fiscal 2025 and 2024.
About Earnings Per Share Disclosures
The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.
Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.